Tax Concepts

Depreciation Recapture

Tax owed on depreciation deductions when property is sold, taxed at 25%.

Reviewed 9 August 2026 by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Pay back the tax benefit at sale — unless deferred via 1031 or eliminated via step-up.

Examples

$100k depreciation taken × 25% = $25k recapture tax at sale.

Common mistakes

Forgetting recapture when modeling sale net.

Depreciation Recapture

Plain-English explanation

Examples

Common mistakes

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